Webinar Recap: The PMO Lifecycle – Building, Running & Shutting Down – Organizational Change Management: What is the role of the PMO Manager?

Please find a transcription of the audio portion of Bill Dow’s The PMO Lifecycle – Building, Running & Shutting Down – Organizational Change Management: What is the role of the PMO Manager? webinar being provided by MPUG for the convenience of our members. You may wish to use this transcript for the purposes of self-paced learning, searching for specific information, and/or performing a quick review of webinar content. There may be exclusions such as those steps included in product demonstrations. Watch the complete webinar at your convenience.

So today’s agenda, we’ll go over organizational change management, what is it? We’ll go over the role of PMO Manager. We’ll talk about the industry, the different models out there, we’re going to focus on Procsi’s ADAKAR model. We’ll look at the organizational and employee change curve and then we’ll wrap up. And I do want to say thank you to everyone who has read my article on MPUG and is already commenting. That was a little bit more focused on the project managers but again, between material we’ll cover today and what talked about on my article, again, thank you. You’ll have a pretty good picture on organizational change management.

So what is organizational change management? We really hear a lot of different definitions and so what I’ve done, I’ve summed it up. Change is what happens between your current circumstances and your desired future state. Well, that’s simple. Actually, it’s not, it’ve very very complicated. And it’s a huge part of project managers. We see survey after survey showing to us that organizational management is a point of project failures. And so, we have to get better at that, we have to get better from a project manager perspective, a PMO manager perspective…generally, we have to get better at that process and we’ll show you guys a survey coming up here. So very simple definition but very complex in how to actually execute it. When we think about OCM (Organizational Change Management), we think about it in buckets. We think that there’s really 3 main buckets. There’s the process and there’s hundreds of examples of process, right? We’re going to do timesheet tracking, what’s our process on vacation policies, what are our financial policies and what process changes are we going to do from that perspective? So you think about your business today and you think about all the processes that are in your business, you’re going to certainly think “there’s a lot of things I can change” and therefore, when we think about OCM, we have to take the people through that process. Technology. When we make changes to timesheet systems or payroll systems or new financial systems, right? That’s another bucket of OCM that, again, we have to take the people through. And then culture changes. A lot of the times we’re trying to change the culture, that’s a major people process and so open mindset vs. closed, new collaboration techniques, meeting etiquette. These are all examples of culture changes that we would have to take the people through and when you think about OCM, your big, big focus is the people and the people side of it. We’ve got more of that coming up. So I look at OCM in these 3 big buckets. Process, technology and culture. And again, if you guys can think of other areas of how you bucket it, definitely let us know through the chat but I i’m thinking it’s really these 3 things.

What is it not? And trust me, there’s a ton of confusion out there and I don’t know why there’s so much confusion but what is it not? What isn’t it? Well, it’s not project change management. So when you deal with scope changes or resource changes or schedule changes, it’s not that, right? That is a separate process, separate thought process. It’s a separate thing that you go through. OCM really has nothing to do with the changes of a particular project from a scope, resource and schedule perspective. We really have to look at those [?] big buckets. Now I ask you, does your organization confuse that? Do your executives confuse that? And I know overwhelmingly, the answer will be yes because I continually hear that on a regular basis. Well change management is just like scope changes and resource changes, right? No it’s not. OCM is completely different. So if we take away anything, we really have to be very clear and we have to stop people in their messaging and say “no, no, you’re talking about this or you’re talking about that, you’re not talking about the same thing”. And so I know we get confused on the word change but that confusion still happens and it continues to happen. And unless we change from the PMO perspective or unless we change from the project manager perspective and we change the conversation, we’re going to continue to struggle with that. So huge takeaway there is just make sure, and really I know it’s very, very simple but stop that confusion and really get clear with that going forward.

Why is this so important? Who cares, right? Who cares about change management? Who cares about OCM? Why is this so important? Well, the number 1 reason why it’s so important is because it increases your chance of success. We see project survey after survey on project [?] and the lack of OCM continues to be on that list. Actually, [?] captured over an 8 year period and they said that projects are 6 times more likely to succeed when they had change management practices in place. 6 times more likely! That’s a massive amount, right? So just by getting that rigor and getting that good organizational change management processes in place, you’ve got 6 times the chance of succeeding in your projects. So let’s test that, let’s look at that. Here’s one of the hundreds, thousands of surveys out there and I put the source so you can go look at that but we said, hey, projects will fail without OCM. And right there, poor change management, 29%. And I’ll give you a minute to look at those and I would say if you look at those and you scan those, you’ll probably even say “hey some of those things have something to do with change management”, that’s outside of that. So changes in project objectives. If you look across those boards, I think you could probably apply OCM to a lot of these areas but in this particular survey, they’ve actually called it out at 29%. So roughly 30% of our projects are failing with poor change management. Have you guys seen that? Have you guys seen that kind of response? Yeah, definitely, across the board we see it over and over and over again. Or we see it as something that PMs will think of it as kind of an afterthought. It’s not something that they’re going to do and think about right away. And so one of the best practices is really to get an OCM expert on your projects. Then making sure they’re lined and tied to the hip with the PM. You can reduce this number and you can actually be more successful in how you execute your projects. Part of that and part of getting the organizational change manager tied to the hip and assigned to projects is the role of the PMO manager, right? And so in a lot of cases the PMO manager will be able to assign the specific resources, will assign the program manager with the PM. While the PMO is really caring abut OCM, they’re also going to say hey, one of the things we need to do is get an OCM expert assigned to these projects as well. So the question is, what do PMOs do in that OCM process? What’s their role? Do they care, do they not care, do they have any role in this? Well, yeah, they certainly have one role, we just talked about it. The role would be to get an OCM person involved. Their role is either to act or support the change management process. The PMO manager is really in the best position to focus on vision, future state and outcome. I like this, the PMOs will approach the work holistically, as a system. They focus on the people. When we think about OCM, we have to think about the people and how the people will be impacted by this desired outcome. What change are we going to do and how will people be impacted by that. The PMO managers will develop consensus. They’ll proactively achieve desired outcome. PMO manager plays a huge, huge role in this. Now the thing is, not all PMO managers are change agents. They can actually hire change agents to be assigned and be a part of their [?] and be assigned to their projects. So they’ll either act as a change agent, in some cases they have to in behalf of all of their programs that are running in their work or they’ll actually hire people and have someone assigned to it. So does that make sense? When we really think about what’s a PMO managers role, they play a very, very important role in that. I define it as either acting or supporting that change and really being involved in that because if they’re not, you’re going to see those project failures. You’re going to continue to see the same project failures, you’re going to see PMs who will be far too busy executing the project to then pick up the OCM. So I see a real separation of duties there. You’ve got to have an expert there that’s really, really focused on change management to help you deliver these projects. And we see that in some of our organizations and some of our groups. We see that they hire Procsi experts and they’re much more successful when they execute their projects. Does that make sense? So we definitely see that PMO manager is a very big, very big role in that and so the other responsibility of the PMO manager is really going to be about understanding the methodologies. They don’t have to know a ton of them but they have to understand them and they have to know some of them so they can actually help their organization move forward. So when you think about the different methodologies out there, there are tons. There’s the Lewin’s Change Management Model, The Daryl Conner’s Change Model, Prosci’s ADKAR Model…we can list off hundreds and hundreds of these things. Which is awesome, there’s a ton of them. Again, the industry is full of them. Organizations are going to adopt them for different reasons. No one model is better than another and often what it comes down to is what does this organization want to do? I know MS is really big into Prosci so there’s a ton of Prosci out there. I know other companies are big on different models and so they go down that path. There’s no right or wrong model. Any company that is adopting and understanding the importance of OCM is already a step ahead. I think it’s really important to care about getting a model in place regardless of what that model is and so as a PMO manager, you’ve got to be thinking around these models. So let’s look at some of the models.

So here’s Daryl Conner’s Change Model. So when you look at this model, very simple and very basic, the Conner model, really involves 3 parties. The sponsor, that’s the person who owns or authorizes the change. The agent, that’s the change agent, the person responsible for carrying out the change and that target. The target is typically the customers and who the change is defined for. Now if you take that same structure and that same concept and apply it because we’re [?] PMs, the sponsor is the same as the sponsor on the Conner model, right? The PM correlates to the agent or the change agent and like I said we could have an additional person there but generally this is how it relates and then the end user matches up with the Conner model end user. The people that the change is required for. It’s really nice to see the simplicity of that but it’s also nice to see how that Conner model will balance with programs and projects as well. We’ve got a good mix there with that. So have you guys seen that Conner model before? It’s very, very popular, it’s been around for a while. Very, very basic and simple. But certainly one you can start using and incorporating into your projects.

The Lewin’s Change Model. So this one has been around for a long time as well. Very simple, very basic. Unfreeze: determine what needs to be changed. Change: involves people in the process to make the change and then “Refreeze” which develops ways to sustain the change. And that is absolutely the hardest part of all change management model…it’s that ongoing, that ongoing model to sustain that change because people like to flip back to their old ways and again, it’s that [?], one that’s important and why CM takes so long as well. So that’s the Lewin Change Model.

And then finally, the one I absolutely love and the one I have the most experience with and that’s the Prosci ADKAR Model. And that’s awareness, desire, knowledgeability and reinforcement. So they basically highlight awareness, desire, knowledge, ability and reinforcement. This one is simple, we’ll go through it in detail here. Prosci has some amazing information on their site. Very easy to consume, simple to consume. Difficult to execute of course but all change models are but the ADKAR model is something I highly recommend people jumping into and learning.

Again, the industry is FULL of these models, right? But as PMO manager, you should be spending your time-you don’t have to know every model out there but knowing one or two models, really kind of getting a feel for them and how they work and how they would work in your organization would be a very valuable component. And so what I want to do because I believe so strongly in the ADKAR model, I believe we should look at one of those and as a PMO manager, you should know one model pretty well.

So let’s look at this ADKAR model. So it’s absolutely my favorite, I’ve used it multiple times. Comes from Prosci, this is all great Prosci but like I said, it’s easy to use, easy to consume. I really feel like it’s one of the best in the industry. I’m very biased because I’ve been through it multiple times and I just absolutely know the importance of it in driving the success of a project. So, let’s look at that model. So here it is, he ADKAR model. Awareness: why we need the change. Desire: people support the change. Knowledge: how do we change? Ability: we implement new skills and behavior. And reinforcement: keeping the change in place. And so what we often see, we see that the knowledge and the ability kind of get merged together a little bit and so I caution that, I question that. I say, you know, how do we make the change and implementing new skills, they do kind of sit together but as we walk through it, I think it will make a little bit more sense. But this is a model, right? This is the ADKAR model and like I said, I think it’s something that’s very, very easy to get people kind of excited about it and it’s easy to get people walking through the process. And once you help people through the process, then everyone will get excited about keeping that change in place which is really reinforcement and that’s really the success of this model. You can take everyone through the first 4 stages but if you don’t keep that reinforcement, keep the change in place, you really won’t be that successful. Does that make sense? I’m sure you guys have seen other models before and so again, this is one I wanted to walk through because it’s so easy to consume, so easy to get out there and I’m excited to share that. So, let’s look at each of these. So awareness, why we change, why we need this change. So when you’re talking about awareness, you’re really thinking about the things that build awareness. So how do you bring awareness? Communications, access to information on why changing, a condition or event triggering the change. This is what builds awareness, something major happens and we go “okay, we’ve got to put a change in place”. Again, those changes go back to those 3 buckets and we talked about those buckets earlier…process, technology or culture changes…something major has happened so we have to get this awareness out there. Now, what’s a great example of how we get that out there? Leadership messaging. Again, if you don’t have leadership on board with you, you will really struggle to be successful with this. If you’re going to do a culture change, like an open vs. closed mindset, you need to do that towards leadership. So any major people changes, you have to think about what the role of leadership is. Another example, conversations with management, employee communications. Lots of examples of what could happen and how we build awareness. But if you don’t build that awareness, if you don’t get that awareness out there, people are not going to adopt it, they’re just going to wait it out. I’ve seen that happen, people just going “yeah, yeah, yeah, we’ll just [?], we’re not going to put up with this”. We’ve seen this change before and this is where that leadership messaging plays such a big, big role. So awareness is the number 1 stage, it’s one of the most important, it really gets the ball rolling from a CM perspective. Desire. Determining motivational factors for the person to accept and adopt the change. This about how strong that statement is, think about determining motivational factors and how everyone is motivated and how everyone is motivated differently. I may be motivated by money, my partner may be motivated by promotions or advances in his career. I may need a gold star and my partner may not need a gold star, maybe happy with me getting the gold star. Motivation is such an individual thing and when we think about the impact on people, we need to look at how people are motivated. So incentive, risk of penalty. Some people are motivated by risk of penalty. You don’t tend to speed because you may get a ticket. To belong. To follow a leader. We have some amazing leaders at my company and you’d do anything to follow that leader. That leader says “jump” and you say “how high?” and you want to be able to follow that person. And we’ve seen that, every company has got these amazing leaders. And so think about the motivational factors and how we can get people to flip and how we can get people to be excited about the desire stage. So what are some of the methods? Active and strong leadership support and messaging. You’re going to see that’s a threat. Once you start looking into OCM, you spend some time with this. Leadership, leadership, leadership and the support and the messaging with leadership is going to be critical. I’ve seen project success bases on one thing: the constant leadership support and messaging. And I’ve seen projects fail because of the same thing. Employee involvement and buy-in for the need to change. When you think about the desire, you have to convince every employee. You’ve got to get their buy-in and their involvement in that process. They need to know, “hey, a major event happened, we’re trying to do something” and they need that change. Proactive measurement of the resisters. What do we mean by that? You’re going to have people that resist and I constantly see people resist so what’s a proactive measurement of the person, the set of resisters? I say pull them into a room, get them together, go through this. Let’s grab those resisters at the very early stage, when desire is at the very early stage and let’s figure out how we can convince them. How we can make them understand this change is required. If you get the early resisters and you get the folks that are fighting you the hardest at the very beginning, the rest of this will be easy. It’s those ongoing resisters that you’re constantly needing to deal with that causes the biggest problems. Work with those early resisters. Knowledge. So we had awareness, we had desire, now we have knowledge. What do we mean by knowledge? Well that’s giving the individuals the knowledge to change. So we have to give them the knowledge. Education. What builds knowledge? Education, access to information. When you think about mentoring, that’s a critical component of building knowledge. Knowledge doesn’t just come overnight, it comes over time. So you think about a mentoring process and I’ve got those in my book, live and breathe them. The mentoring system, the buddy systems, I’ve talked about them before on MPUG. I absolutely think that the critical moment to giving people the knowledge to make this change. We also talk about job aids. one-on-one coaching, user groups…it’s that ongoing knowledge that people are going to need to understand how to do this change. This is where we see that little bit of bleeding into ability. So when we say knowledge and we say ability, and we kind of bleed those together and I kind of go “do we need to caution that?”. Again, you need to figure out how for your organization this will work. But what’s ability? Individuals demonstrating the required changes and desired results are achieved. So how do I help individuals build the ability? Practice, practice, practice…access to the right tools, coaching…you can see that’s a little bit different than knowledge. Giving them the information then allowing them to practice and do it within tools. You can see how they’re together but you can see how they’re kind of separate as well. Again, think about ability. Access to coaches, monitoring, hands-on experience…so these are all the processes you’re going to walk through to make sure people have the ability to do the job. Ability to enter into a new timesheet system, ability to enter into a new financial system. You’ve given them the knowledge, you’ve trained them and said here’s how to use the system, now you get in there and get them plugging away and practicing at it, setting up den environments, giving them that hands on. So the difference there, the knowledge and then the ability…they are blended together but you do also want to call them apart because they are separate. So people are walking through and they’re asking you what the difference is between knowledge and ability. You’ll be able to go back and say this is knowledge, giving them that upfront information and abilities are allowing them to get in there and practice their abilities. And then finally, which is the hardest part, absolutely the hardest part is reinforcement. This is also the part that takes the longest. Not letting the organization fall back to other methods/procedures before changes were implemented. So we’re implementing a new timesheet system, we’re introducing new open vs. closed mindset, whatever this massive change that we’re trying to do across the people…whatever that change is, how do we reinforce it? How do we do it…rewards, corrective action and direct feedback. Imagine you’re rewarding the org, a couple hundred dollars, whatever the reward may be, because they continue to use this new system or they’re now using an open mindset and we’re changing the view of the organization. Corrective actions. Again, probably those resisters, that have resisted all along, may need some corrective action. Direct feedback. Again, in that resister, they feel like it’s a little bit in that resister column, how do we reinforce that? Direct feedback. You must use this new timesheet system, you must use this new financial system, we expect you t be more open in your mindset or whatever the case may be. There’s a million examples. Examples: leadership positive messaging and feedback. Imagine if your leadership continues to push great open mindset conversations. “Thank you everyone for using this new timesheet system”. Imagine that. Celebrations and rewards…public recognition. In all hands meetings, Joe created the new system and implemented-or whatever the case may be but all these areas where you can publicly recognize the people that are reinforcing or continuing to implement the change. Because again, we step back. Why did we do this? Why did we implement a new financial system, why did we implement open vs. closed mindset? Because something major happened and we needed to make this change. Now reinforcement is going to take some time, it’s not something that can be done overnight. But it’s certainly something you have to think long term and this why I go back and say this is not necessarily the PMs job. This is where the OCM expert who’s in it for the long haul. Where a PM will finish a project, go on to the next one, finish a project, go on to the next one…this is where that OCM and that longer haul conversation takes place and this is where a PMO manger can make a huge difference with that. So wrap up, on this particular thing. Awareness, why we need the change? Desire, people support the change. Knowledge, how do we change? Ability, implement new skills and behaviors. Reinforcement, keep the change in place. It’s easy to use, it’s easy to consume and I feel like it’s one of the greatest models out there. Just wonderful and once you’ve done it a couple of times, you’ll get really excited s get check it out, go to the website and really kind of dive into it and as a PMO manager or PM, you should be aware of at least one or two of these organizational change management models.

Let’s jump int organizational change curve. I think it’s really, really important that we understand the OCC and what does that curve mean, how do we handle that process? So it’s really important-what is that change curve, what do we really mean by that? Organizations take time to go through this change and every organization will go at different speeds, no organization is the same and because of that, they’re going to go at different speeds. So one of the things we really get accustomed to it as we finish and execute projects is we try to finish the project, and go to the next one, we try to finish the project, go to the next…you can’t hurry this process. This takes years and years and years to go through. Imagine trying to change an organization of 100,000 people from an open mindset to a closed mindset. That would be a bad thing, you’d want to do the opposite. A closed mindset to an open mindset. So again, it’s really, really important to understand that will take a long time so you don’t want to hurry your organization through this process. You want to really work with your executives and say we’re in it for the long haul, this is not something we can do overnight, especially from closed to open. So that’s really, really important. When we think about the change curve, we also think about, how do organizations go through it? So it’s really, really interesting. An organization handles a change at the tactical project execution level. A person will handle a change at an emotional level. So lets just think about that for a second. So an organization will handle it at the project level, we’re going to do a project from closed to open mindset. That’s a project, an organizations going to tackle that like a project. But people handle it at an emotional level. So how do you go from a closed mindset to an open mindset? That’s going to be an emotional toll. How do you do you go from a current financial system to a new financial system? You own that financial system. That’s an emotional toll. So if we look at those three buckets that we talked about, we have to focus on the emotion on the people side but understand that the organization just looks at this as another project. That’s a difference that really lets you focus on OCM when you look at it from both an organizational perspective and then of course the people perspective.

One of the things to be successful in change management, running an organization though change management is checkpoints. Any one of these models, I just used the ADKAR model but then what we do is we add checkpoints. We say, okay, we’re just kicking off from the awareness, let’s do a checkpoint. We’re moving now through to knowledge, let’s do a checkpoint. Have we done awareness correctly, have we done desire correctly? So staging these checkpoints throughout the life of an OCM project will actually help with that change curve. And will really help you understand where the organizations at when you put these checkpoints and you do them around the major events. So getting a chart like this set up and say “hey, as we execute this close vs. open, we’re going to use this methodology and we’re going to put these checkpoints in place”. So we can step back and say “you know what, we think we’re at knowledge right now but we’ve not moved the bar on desire” so we have to go back and say “hey, we’ve gotta do a little bit better around desire”. We still have those resisters, for example. We’ve not moved the bar on the resisters, we’ve got a ton of resisters, there’s no sense in going through knowledge, ability and reinforcement. It’s never going to happen. So you’ve got to stop at that desire. These checkpoints, because this is a long haul, we’re not just trying to get this project over as fast as possible, we’re going to see this curve, we’re going to eventually get to reinforcement, get to this bigger, good curve and we have to do it by checkpoints.

Another reason why we want the checkpoints, another reason why we don’t want to speed through this process, is because employees change at different speeds and at different rates. So to really understand that, you can’t tell everyone to be at desire, everyone to be at knowledge, everyone to be at reinforcement…what your change curve is going to look like is this. You’ve got a couple at desire, awareness, just passed knowledge, some at ability, some at reinforcement…some people will blow right through this. “You want me to go from closed to open? Good, I’m done. Tell me what I have to do”. “You want me to use the new financial system? Good, I’m done. Just give me the access”. Some people are like “no, no, no, I’ve been using this system forever, I’m not going to change” or “I own this system, you’re taking it away from me?”. So you can see, people will be at different components and because they are at different stages of the lifecycle, you can use any of the systems. People are going to be at these different stages and if they’re going to be at different stages, you’re going to want to put these checkpoints in place. So I think it’s really, really important to have that understanding of putting checkpoints in place and the people in place and then really having that process where you step back and you say exactly where we’re at. So people are going to be at different points. So, let’s do this. Why are they at different points? Because they’re too busy working on their project or they feel like this doesn’t impact them…or change is hard. Out of the office. Say for example, they’re on paternity leave or they’re out for a month’s vacation or trying to go through this awareness stage. They resist wherever possible. There’s hundreds and hundreds of reasons on why they’re on different stages but people will on different stages and unless you have that check process in place and go back through the various lifecycles and say “where are we at? Do we need to go back or can we go forward?” and make that conscious decision that you have most of the organization at a good enough place to go forward, then you go forward. But if you don’t, then you can’t and you have to stand back. This is why this takes so long and this is really a key component of this, you can’t rush this process. And we also talked about leadership a ton, we gotta get leadership on board with that and not rush this process. If you’re doing a big org wide model and big org wide system, it’s going to take time. One example is, we implemented a new financial system and it took a ton of time and we kind of had the leadership bought in and we kind of didn’t and so it really didn’t go so well because we didn’t have that leadership support and people were at different stages. And so again, you’ve got to be really careful with that.

I love this chart. Absolutely love this chart and I wanted you guys to focus on this chart briefly. But again, it’s flight risk. And so it’s really, really important to understand you’ve got comfort, worry and flight risk or risk. And these are the emotions and these are what people will go through and if you implement something too fast, if you implement something without going through the process, you could potentially have people leaving. You look at that normal work environment, productivity lost, turnover, valued employees, this is the process that people will go through. So one of the best processes, one of the best things that we really need to focus on, is really to understand that you should put a flight risk table in place. And what you do is, you name the person, you just basically say are we willing for that person to leave? And are they not willing to accept this change? You can develop whatever columns and whatever thing you want but basically you want to understand how people are going through this change and how important it is to be proactive and the possibility of losing people based on the change that you’re implementing. So if Mary owns the financial system and Mary is an unbelievably star employee and you come up to Mary and you say “we’re going to take away your financial system, you’ve owned it for 20 or 30 years”, you could potentially lose Mary. Now is that a big deal? Maybe. Is it not a big deal? It may not be. But that’s what a flight risk table will do. It’s “we’re going to implement this change, here are the resisters”, you’ll be able to name some of the resisters right away and we say “what if we don’t get these people moved over, is that going to be a huge problem?”. I strongly suggest you create a flight risk table and again, I really like what Prosci is doing with that so I really believe that’s something that you should consider as well and get that set up for your organization.

So as we wrap up, your role as PMO is to support and drive the change process in the organization. You may not be the change person itself, you may have to hire someone or you may be that person but you are in the best position to help change and drive OCM through your people, through your process and to really get that through your organization. There’s hundreds of different models out there, you can’t know them all but you should know a couple. You can look at the advantages and disadvantages of them but given that role where you actually want to learn and you value the importance of these. And if you wrap up OCM in general and really what is it about, it’s about the people. We talked about the emotional toll it takes on people. Change is hard, people don’t really like change in the grand scheme of things and OCM is really taking the organization through that process.

I want to thank you all today, I absolutely love this process. I really believe strongly in it and I hope you guys do as well.

Bill Dow, PMP, is a published author and project management professional with more than two decades of experience in information technology, specializing in software development and project management. Bill has built and operated large project management offices (PMOs) and is the author of three project management books. The latest is Project Management Communication Tools, co-written with Bruce Taylor. Contact Bill at billdow@dowpublishingllc.com.

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